Westjet 2015 Annual Report Download - page 26
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WestJet Annual Report 2015 | 24
Other revenue
Other revenue increased by6.0 per cent to $116.2 million for the fourth quarter of 2015, from $109.6 million in the same
period of the prior year. This increase was driven mainly by an increase in ancillary revenue. The following table presents
ancillary revenue and ancillary revenue on a per guest basis for the three months ended December 31, 2015:
Three months ended December 31
2015 2014 Change
Ancillary revenue ($ in thousands)
79,832 66,971 19.2%
Ancillary revenue per guest
16.39 13.89 18.0%
For the three months ended December 31, 2015 ancillary revenue was $79.8 million, an increase of 19.2 per cent from $67.0
million in the same quarter of 2014. On a per guest basis, ancillary fees for the quarter increased by 18.0 per cent to $16.39
per guest, from $13.89 per guest during the fourth quarter of 2014. These increases are mainly attributable to the
introduction of the first bag fee in October 2014. Other areas contributing to the increase include higher fees associated with
the enhanced Plus product that we introduced in mid-September 2015 and the continued penetration of our WestJet RBC®
MasterCard± program.
Expenses
On December 31, 2015, we transitioned from a functional-based presentation of operating expenses to a nature-based
presentation of operating expenses. The transition to a nature-base presentation of operating expenses was done to align
more closely with industry reporting practices and enhance comparability with industry peers. Total operating expenses
remain unchanged. The following table provides our newly presented financial statement operating expense line items for the
current and comparative period (please refer to page 26 under the heading
Nature-Based Reporting
for five years of historical
annual operating expenses re-presented).
Expense ($ in thousands)
CASM (cents)
Three months ended Dec 31 Three months ended Dec 31
2015
2014
Change
2015
2014
Change
Aircraft fuel
182,181
243,816
(25.3%) 2.79
3.82
(27.0%)
Salaries and benefits
198,310
184,210
7.7%
3.04
2.89
5.2%
Rates and fees
139,534
128,289
8.8% 2.14
2.01
6.5%
Sales and marketing
84,009
85,852
(2.1%)
1.29
1.35
(4.4%)
Depreciation and amortization
75,237
54,696
37.6% 1.15
0.86
33.7%
Aircraft leasing
41,881
45,546
(8.0%) 0.64
0.71
(9.9%)
Maintenance
47,160
24,927
89.2% 0.72
0.39
84.6%
Other
68,847
64,052
7.5%
1.06
1.00
6.0%
Employee profit share
8,869
23,399
(62.1%)
0.14
0.37
(62.2%)
Total operating expenses 846,028
854,787
(1.0%) 12.97
13.40
(3.2%)
Total, excluding fuel and profit
share
654,978
587,572
11.5% 10.04
9.21
9.0%
During the three months ended December 31, 2015, operating expenses decreased by 1.0 per cent compared to the same
period in 2014. On an ASM basis, operating expenses decreased by 3.2 per cent to 12.97 cents from 13.40 cents in the same
period in 2014. This decrease was largely driven by decreases in aircraft fuel expense and our employee profit share expense,
partially offset by the increase in maintenance expense and depreciation and amortization expense.